GENERAL COMMENTS:
Monday left livestock contracts mostly unharmed by its arrival. It would be fair to say that not many expected live cattle to keep all of Friday's position and then add to it. And even though we all hope and pray that hog producers get a break, it's not surprising that the hog market closed lower. Hog prices are lower on the National Direct Afternoon Hog Report, down $1.67 with a weighted average of $46.81. December corn closed six cents per bushel lower. The Down Jones Industrial Average is up 114.75 points and the NASDAQ is up 46.80 points.
LIVE CATTLE:
Nicely done live cattle markets, nicely done. The live cattle market secured another day worth of gains, both on the board and oddly enough, even in the countryside. December live cattle closed $0.55 higher at $120.07, February live cattle closed $0.37 higher at $124.60 and April live cattle closed $0.12 higher at $125.57. Given that Friday had such lavish gains, it wouldn't have surprised anyone to see Monday be weaker and timid. But the board continued to rally and the countryside went about its business as usual. There were 119 steers sold in Nebraska for $182 dressed -- $2.00 higher than last week's $5.00 dressed cattle rally. The rest of the county remains quiet.
Boxed beef prices closed higher: choice up $1.61 ($234.81) and select up $2.87 ($210.38) with a total movement of 81 loads (46.50 loads of choice, 15.86 loads of select, 11.34 loads of trim and 7.18 loads of ground beef). Monday's slaughter is estimated at 115,000 head, down 3,000 head from the previous week and down 6,000 head from a year ago.
TUESDAY'S CASH CATTLE CALL: Steady. Tuesdays can be tumultuous to the livestock complex. Given that Monday successfully gained the ground that it did, it wouldn't be surprising to see the countryside quiet and the board give up some position.
FEEDER CATTLE:
November feeder cattle closed five cents lower at $149.07, January feeders are steady at $146.00 and March feeder cattle contracts closed 17 cents higher at $145.30. The spot contract and nearby January board were leery of advancements early in the week while the deferred feeder cattle contracts rallied anywhere from $0.40 to $1.07.
On an estimated run of 6,500 head (up 392 head from the previous week), Joplin Regional Stockyards in Carthage, Missouri, sold feeders on Monday $3.00 to $6.00 higher and yearlings steady to $2.00 higher compared to last week. Demand was good and supply was moderate. In the live cattle market, and now even in the feeder cattle market, every cattleman loves good prices but knows that with the good comes the bad. The initial run of the feeder cattle market was expected to be good, but the turning of the tide must be coming soon. With a little over a month into the fall run and going on the eighth week of a stronger board, a correction wouldn't be shocking, especially knowing that two major non-beef dish holidays are right around the corner. The CME feeder cattle index 11/01/19: up 47 cents at $146.45.
LEAN HOGS:
With the large numbers of readily available hogs, no confirmed news of a "sign, sealed and delivered" phase one agreement with China and hog carcass weights on the rise, the lean hogs future's board closed up $0.07 in a bullish and surprising Monday. December lean hogs closed 7 cents higher at $64.52, February hogs closed down $0.67 at $71.90 and April lean hogs closed $0.85 lower at $78.62.
Pork cutouts totaled 277.69 loads with 245.65 loads of pork cuts and 32.04 loads of trim. Pork cutout values: up $3.11 at $32.04. The CME lean hog index 10/31/19: down 64 cents at $62.10.
TUESDAY'S CASH HOG CALL: $1.00 lower. Tuesdays have a way of creating havoc in the livestock complex. Given that prices were steady Monday, which could have been stimulated somewhat by cutout values, it wouldn't be surprising to see Tuesday's prices be softer given that its early in the week and the market's overabundance of supply remains.
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